Bitcoin (BTC), investors are voting using their wallets, as there have been one-day outflows on major exchanges close to 30,000 BTC.
CryptoQuant data shows that 29371 BTC were removed from exchange order books on January 11, 2017, the highest since Sep. 10.
Short-term optimism returned on Tuesday with BTC/USD rebounding and maintaining levels above $42,000. This corresponds to the four-month high in outflows.
They then hit local highs at $43,150 and then consolidated. This was a completely different outcome to the widely-predicted cascade to $30,000.
Although such an outcome is still a matter of debate, buyers seem to be comfortable entering the market for prices above $40,000.
To give you an idea of what happened, even the bounce that sparked the rise to all-time highs at September’s end failed to bring as many buyers as Tuesday.
Chart of the netflow of Bitcoin exchanges. Source: CryptoQuant
“Volumes have been very low. This means that the market can easily have large moves up or down,” Samson Mow (CEO of Blockstream) commented on the status quo.
“Given that there was a major move down and that everyone is buying like nothing is tomorrow, I would say the next move will be up.”
CryptoQuant monitors 21 exchanges to provide order book data. Separate data was collected last week to show what an analyst called a “crazy imbalance” between asks and bids. This indicated that bears were finally tired of selling.
Buyers get bolder
Spot buyers were the primary group that was not interested in Bitcoin at current prices.
Related: Bitcoin rises to $42K, as the bets favor a’short squeeze.’ Higher for BTC
Cointelegraph reported that miners are adding to their reserves at a faster pace this year. Long-term holders remain firm in their resolve to not sell.
CryptoQuant contributor IT Tech highlighted a bullish trend within the Bitcoin taker buy/sell rate. It also revealed that a similar situation was unfolding on derivatives markets.
This metric is the ratio of takers on derivatives platforms to buy and sell volumes. A value of less than 1 indicates bearish sentiment. However, this is not the current trend.
“If we cross 1, then we should have Bullish mood again and it could price trend reversal,” IT Tech stated in a Wednesday “Quicktake” post.
“Personally, I’m preparing for the final bull run, which will happen sooner or later.”
Screenshot: Bitcoin taker buy/sell ratio vs. USD/BTC annotated chart Source: CryptoQuant
Eileen Wilson –Technology and Energy
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